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Apple's weak iPhone gross sales aren't an enormous drawback – individuals have been ready for the brand new fashions

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Apple CEO Tim Cook unveils the new iPhone 12.

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Apple reported profits on Thursday and investors disliked the results. Apple stock fell 5% in expanded trading despite the company beating Wall Street expectations for earnings and sales.

The decline was likely because iPhone sales were $ 26.4 billion, down 20% from the year-ago quarter.

Apple sales in China also suffered, largely due to poor iPhone sales, Apple said. Revenue in China declined to $ 7.95 billion from $ 11.13 billion a year ago, a decrease of 29%.

But the iPhone sales situation is not as bad as it looks. This year, Apple's new iPhones went on sale about a month later than before when Apple wired this summer.

The iPhone's weakness may be due in part to the fact that people were waiting for the new iPhone 12, which didn't go on sale until October. In fact, both Apple CEO Tim Cook and CFO Luca Maestri said that iPhone customer demand was strong and grew until mid-September – when Apple usually released new iPhones.

"This is a very impressive level of performance when you consider that we didn't launch or ship any new iPhone models in the quarter this year," said Luca Maestri, Apple's CFO, of Apple's fourth quarter, which is in the September ended.

Apple presented several supporting points on Thursday:

Demand in the first part of the quarter was higher than in the previous year. Until mid-September, when Apple held a launch event with new Apple Watches but without new iPhones, demand for iPhone 11 models rose "in double digits and was well above our expectations," said Maestri.

Cook elaborated: "If you look at the iPhone and look at it in two parts, one before mid-September, before the time we would have launched the iPhone last year, during this period during the largest For part of the quarter, the iPhone grew from a customer demand perspective, and of course the fact that no new iPhones shipped in the last two weeks of September makes that number negative overall, "Cook said.

Growth expected in the holiday quarter. Apple expects iPhone sales to rise in the December quarter, despite the fact that the new iPhone 12 models were launched four weeks into the quarter and two new iPhone models are not yet on sale came. Last year, Apple reported iPhone sales of $ 55.96 billion for the reporting period.

China is also expected to grow. "Greater China is a region that was hardest hit by the lack of new iPhones in the September quarter. Still, we exceeded our internal expectations in the region and demand for iPhone customers increased through mid-September," said Cook.

Cook then said he expects China revenue to grow in the December quarter.

"New iPhones account for a greater percentage of sales in China. As a result, the full quarter started with a minus sign. However, given the early developments in the new iPhones, we are confident we will." I'll grow in the first quarter, "Cook said in an interview with CNBC's Josh Lipton.

Delivery restrictions. According to Apple, iPhones are "limited", which means they'll sell faster than Apple can make them.

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Katherine Clark